Fidelity Bank Plc has posted profit after tax of N23.307 billion for its 2022 half-year results, representing a growth of 20.72% year-on-year.
In its unaudited half-year financials submitted to the Nigeria Exchange Group Limited (NGX), the Bank also made significant improvements across key performance indicators.
The result is on the back of an inflationary year, where businesses and their consumers have had to deal with the rising cost of goods and services.
Analysis of the results indicates that the bank’s gross earnings rose by 37.87% to N154.843 billion from N112.304 billion reported in 2021, driven by a 50% growth in net-interest income.
Profit before tax stood at N25.079 billion from N20.628 billion posted in 2021, representing a growth of 21.57%.
Interest and similar income using the effective interest rate method rose by 48.45% from N 85.090 billion recorded in the first quarter (Q1) of 2021 to N 126.348 billion in the period under review.
Based on the result the Board of Directors pursuant to the powers vested in it by Section 426 of the Companies and Allied Matters Act (CAMA 2020), proposed an interim dividend of 10 Kobo per share amounting to N2,896,258,569.20 from Retained Earnings as at 30 June 2022.
This will be presented for ratification by Shareholders at the next Annual General Meeting. Payment of the interim dividend is subject to withholding tax at the applicable rate of 10% which will be deducted before payment.
The bank’s Profit before income tax for Q1’2022 had inched slightly up by 1.9% from N10.134 billion in Q1 2021 to N10.324 billion.
Profit after tax stood at N9.515 billion, almost the same amount, N9.590 billion realised in the corresponding quarter of 2021.
What the bank is saying
Commenting on the bank’s performance in March, Nneka Onyeali-Ikpe, MD/CEO, Fidelity Bank Plc, said “Digital Banking gained further traction driven by new initiatives in our retail business and the enhancement of existing digital banking products.
We now have 56.0% of our customers enrolled on the mobile/internet banking products and 90.0% of total customer-induced transactions done on digital platforms with digital banking business contributing 27.6% to net fee income.”
Other key financial highlights
- Net interest income after credit loss expense stood at N73.648 billion from N47.992 billion in 2021
- Fee and commission income was N16.084 billion in 2022 from N12.726 billion in 2021
- Fee and commission expense stood at N6. 026 billion as against N3.309 billion in 2021
- Income tax expense was N1.772 billion in 2022 from N1.322 billion in 2021
